I feel like the majority of casual gamers who would have been interested in buying an Xbox One because they enjoyed their Xbox 360 may have been thrown off by the price difference. I believe half of those people are either holding out for a price drop or already own a PS4.
As for the more hardcore gamers, a good deal of them are either exclusively loyal to Nintendo or they went with the cheaper, more powerful console. Brand loyalty is a myth when it comes to Microsoft and Sony, whoever has the better deal at the time is gonna be the one people go to. This isn't a knock on Sony or Microsoft fans, it's just the way I see it. If you disagree then you tell me, if Microsoft had a cheaper product that outperforms the competition and has great games on it, you would buy Sony's product? I doubt that.
With that said, Microsoft can still come out of this hole. The performance issue isn't as big as people make it out to be, if they can give people enough great exclusives people won't care as much about whether the game is in 1080p and 60FPS. The price can be cut down and the DRM thing will eventually die out, probably by the end of this years E3.
Funny, I actually wrote an entire article about Microsoft and how they can dig their ways out last week and now here I am talking about it again. (Trying to give my blog a cheap plug :P)
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